Cathay Pacific 2007 Annual Report Download - page 25

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US$ per barrel
(jet fuel)
30
40
50
60
80
90
100
Barrels
in million
0
10
20
30
50
60
70
2003 2004 2005 2006 2007
Fuel price and consumption
70 40
Into-plane price – before hedging
Into-plane price – after hedging
Uplifted volume
Barrels
in million
0
1
2
3
4
5
6
7
1H08 2H08 1H09 2H09 1H10 2H10
0%
19%
26%
30%
30%
Fuel hedging
Swaps/Collars/3-ways options
Extendible option written
Total hedging (excluding extendible option written)
9%
Financial Review
• Fuel hedging gains increased by HK$527 million to
HK$933 million and include unrealised mark to
market gains of HK$214 million (2006: HK$158
million).
• Aircraft maintenance increased as a result of the
fleet expansion.
• Aircraft depreciation and operating leases increased
due to the new aircraft deliveries.
• Net finance charges increased due to additional
aircraft lease obligations.
• The combined cost per ATK of Cathay Pacific and
Dragonair increased from HK$2.23 to HK$2.32 due
to higher fuel prices.
Review of other subsidiaries and
associates
The results recorded by our other subsidiaries and
associates were satisfactory. The share of profits from
associates increased by 251% to HK$1,057 million
mainly as a result of the profit contribution from Air
China for a full year.
A review of their performance and operations is
outlined below:
AHK Air Hong Kong Limited (“AHK”)
• The only all-cargo carrier in Hong Kong is 60%
owned by Cathay Pacific. It continues to operate
express cargo services for DHL Express as its
core business.
Cathay Pacific Airways Limited Annual Report 2007 23